Advice Centre

The process of buying and selling a house can be daunting, we want to myth bust some of the jargon associated with property in our A – Z guide. Still confused? Contact us.

A

AIP

This stands for an agreement in principle and your mortgage broker or lender will be able to provide you with one of these to prove to an estate agent how much you can borrow.

B

Building Regulations

These are government requirements for new build homes and home improvements.

Buildings Survey

This is a detailed report about a property’s construction and condition.

C

Contracts

The legal agreement between a Seller (vendor) and a Purchaser (buyer) this describes the terms under which the proposed sale and purchase are agreed.

Conveyancing

This is how we describe the work of the solicitors dealing with the sale or purchase of property.

Covenant

An important restriction or condition affecting the property.

Completion Date

This is the legal date when monies are handed over via the solicitors and legal transfer of ownership takes place.

D

Deposit

This is a percentage of the full asking price of the property, the purchaser is required to provide a deposit when contracts are exchanged where the remainder is mortgage or Exchange deposit is a percentage of the purchase money held as security following the exchange of contracts.

Deeds

These can also be called Title Deeds; these documents provide proof of ownership/rights to the property.

Domestic Energy Assessor

The assessor who prepares the Energy Performance Certificate (EPC).

E

Easement

This is a right held by a person to use land for a specific purpose belonging to someone else, this usually covers mains, drains and water pipes.

Energy Performance Certificate (EPC)

This is an energy report produced by a qualified energy assessor detailing the energy performance of a property.

Enquiries

These are a set of detailed questions raised by the purchasers solicitors and must be answered by the sellers solicitors before contracts can be signed.

Exchange of contracts

This is the moment when the sale becomes legally binding. Both buyer and seller have legally agreed to buy and sell upon the terms set down in the contract.

F

FENSA certificate

As a homeowner, if you replace doors and windows it is your duty to ensure you get a certificate of compliance. You can obtain this from FENSA, for more information contact your Local Authority Building Control.

Freehold

Ownership of land and any property which stands on it.

G

Gazumping

This happens when a seller accepts an offer than later accepts another offer from another person which is higher than the asking price.

Gazundering

This happens when a buyer submits a lower price than they originally offered just before exchange of contracts, hoping the seller will accept rather than lose the sale.

Ground Rent

This is a payment which must be made under the terms of the lease agreement.

H

Home Information Pack (HIP)

This is an important document prescribed by the government including Index, Sale Statement, Energy Performance Certificate, Property Searches and Evidence of Property Title.

Homebuyers (HSV)

This is a report covering any significant problems which may be detrimental to the purchase of a property or may affect value.

I

Indemnity Policy

Indemnity is the protection from loss and damage claims filed by another person.

IFA

An Independent Financial Advisor who can advise clients on a wide range of financial products from different mortgage lenders and insurance companies.

L

Land Registry

This Government body holds all records of property and land ownership.

Leasehold

A leasehold property is one which is built on land owned by another person or organisation and this third person usually charges ground rent for a fixed term.

Local Authority Search

This is a search of the local authority records confirming the status of a property. This search also checks for changes in the local area and any planning permissions granted.

M

Management Company

This is a company who manages the servicing of a property including leasehold and repairs and maintenance.

Mortgage

A loan for a property which is secured against it.

Mortgagee

A person or organisation who lends money for the purposes of a mortgage.

Mortgage Offer

A formal written offer which sets out the terms of the mortgage loan.

Mortgage Valuation

The mortgage lender sends a specialist valuer to visit the property which is the subject of the loan to decide the property’s worth. The report is only concerned with the property value for the lender and must not be relied upon for building or structural issues. A separate report must be obtained.

Mortgagor

This is the borrower

R

Registered

A property which is registered this means the details of that property are held at the Land Registry and is guaranteed by the state. Buying registered property is more straightforward than buying unregistered property – the owner will hold a ‘Land Registry Certificate’ instead of the usual title deeds.

Retention

The lender will sometimes withhold a sum of money following survey until certain remedial works are completed.

S

Share of Freehold

This means the Leaseholders jointly own the freehold of a property themselves.

Shared Ownership

This is a scheme run by housing associations offering purchasers the option to part buy and part rent their property by paying a mixture of mortgage and subsidised rent. This scheme makes buying property more affordable and offers the option to purchase a greater share if a homeowner’s salary increases.

Special Protection Area (SPA)

A Special Protection Area (SPA) is a site designated as being of European importance for its population of wild birds by the European Habitats Directive.

Stamp Duty

Stamp duty is payable as follows:
* (Figures subject to change with government legislation)

T

Telegraphic Transfer

This is the transferral of funds, i.e. completion monies by electronic transfer. This happens automatically from solicitor to solicitor.

Title

This is the legal ownership of a property and their rights.

Transfer Document

The document which transfers legal ownership of the property.

U

Unregistered

When a property is unregistered then the ownership is not guaranteed by the state and disputes over unregistered property are not uncommon. The title can only be proved by the title deeds and a solicitor must check the documentation for at least 15 years in order to certify it.